The controversy erupted when Chidambaram said that Modi had quoted him wrongly as having claimed that buying gold leads to inflation. The Finance Minister issued a statement denying having said so and took a dig at Modi, saying he is giving "first lessons in economy".

A leading newspaper on Sunday said it had incorrectly quoted Modi. He had not mentioned inflation and only said the country was facing an economic crisis.

"In his hasty statement, unbecoming of a Union Minister, he (Chidambaram) betrays his party's incapacity and frustration to politically engage with Modi," BJP spokesperson Nirmala Sitharaman said in a statement.

BJP demanded that Chidambaram issue an apology. "Through his hurried statement, typically worded with pompousness and put-on sarcasm, Chidambaram has only rushed to cover up his failures to manage the economy. The minister has failed to check what was actually said by Modi. Had he checked the speech, Chidambaram would have known that 'aarthik sankat' were the exact words used and not inflation," Sitharaman said.

She took potshots at Chidambaram, saying while the Finance Minister was interested in delivering "lectures and lessons," Modi is busy providing good governance and development to people in Gujarat.

"All 'economists' are already taking due 'note' of Modi's performance vis-a-vis the worsening current account deficit (CAD) for which he (Chidambaram) and his party are solely responsible," Sitharaman said.